Chance for Tax Reform is Better Next Year

The infamous Kiplinger Tax Letter stated in their March 24th edition that the odds of tax reform this year have “ebbed.” We expect to see a draft of a legislative bill sometime this summer. But that’s only the beginning of the process…most likely time frame in the first half of 2018.

What does this mean for you? It is 2016 all over again! This means buckle in and be ready to find every deduction you can this year. Just imagine if tax reform lowers your tax bracket by only 10%. This means if you wait to take a $100,000 deduction next year, it would cost you $10,000. You may think this sounds bad, but if Trump gets his current tax reform plan passed, that loss will be even higher. The good news is that deductions don’t always mean spending money. In fact, there are a lot of deductions that allow you to not only keep, but potentially grow your money.

Here are 7 of them…

Retirement Contributions (Did you know you can contribute and deduct up to $215,000 in 2017?)

Health Savings Accounts (Did you know this is one of the few places you may NEVER pay taxes on your money?)

Energy Investments (Did you know Section 263 of the tax code allows deductions of 100% of intangible expenditures of drilling, which is usually 65-80% of the cost of the well? Then, there is another bonus of 100% of tangible drilling costs which can be deducted as depreciation over a seven-year period.)

Your Own Insurance Company (Did you know you can potentially form your own insurance company and deduct all of the premiums you send there?)

Health Reimbursement Arrangements or Medical Reimbursement Plans (Did you know you could potentially deduct ever over-the-counter medicine, bandage, insurance premium or other health costs no matter how big or little without it having to exceed 10% of your AGI?)

Your Business, Farm, or Ranch (Did you know you could potentially rent your own home to your business and not pay taxes or write-off almost every golf game you play?) It is all about the documentation.

Rearrange Normal Expenses (Did you know you can send your Required Minimum Distribution from your IRA directly to a non-profit and it will never even showing up on your tax return?)

There is just one thing you need to know: As the year progresses, these opportunities begin to - one by one - disappear. Don’t let Uncle Sam stick you with another 2016 tax bill. Let us help you only pay the taxes you really owe!

*Please be advised we are not tax or legal professionals. None of these strategies are recommendations. Any strategies looking to be implemented should be discussed with your tax and/or legal professional.

Have A Question?

Sign up for my Newsletter

We were honored to have Rhonda Dean, Membership Sales Manager with AirMedCare Network, as our special guest this week on our Life Planning 101 podcast. If you missed the live show you can listen to the rebroadcast below. Life Planning...

You are invincible, right? We all like to think we are… at least until we aren’t. Did you know twenty percent of men die before retirement age? Twenty percent! That’s two in ten men!1. The odds in Vegas can be worse...

There is a growing generation in our country, and it is not a generation in the normal definition of the word. There are 43.5 million unpaid caregivers over the age of 50 in our country. And, worse, one in four caregivers has taken...

Check the background of your financial professional on FINRA's BrokerCheck.

The content is developed from sources believed to be providing accurate information.
The information in this material is not intended as tax or legal advice. Please consult legal or tax professionals
for specific information regarding your individual situation. Some of this material was developed and produced by
FMG Suite to provide information on a topic that may be of interest. FMG Suite is not affiliated with the named
representative, broker - dealer, state - or SEC - registered investment advisory firm. The opinions expressed and
material provided are for general information, and should not be considered a solicitation for the purchase or
sale of any security.

Jim Kennedy is currently registered to sell securities products in AZ, CA, CO, DC, FL, IL, MA, MI, MO, NE, NM, NY, OH, OK, OR, UT, TX and WA. Jim and Aaron are also licensed to offer insurance products in AZ, CO, FL, IL, MT, NC, NM, OR and TX. The information included herein should not be considered a solicitation or an offer to sell products or services in any state besides those in which Jim and Aaron are properly registered/licensed.